U.S – China trade complications have made it increasingly difficult to analyze the global financial markets with precision in 2019. Despite several tensions including Washington’s signature on Hong Kong’s prodemocracy bill and China insisting for a rollback on the previously imposed tariffs, both the Trump and Xi Jinping governments have recently hinted at the prospect of an imminent phase 1 deal.
Footsie’s Performance In 2019 So Far
Owing to the progress in trade talks, the United Kingdom’s blue-chip FTSE 100 index was seen climbing out of a near two-month low on Friday. Opening at 7,137.85 on Friday, the index has recently printed a high of 7,197.09 for the day. Footsie’s overall performance in 2019 has been fairly upbeat regardless of the macroeconomic uncertainty circling the trade tensions and the expected departure of the UK from the European Union.
FTSE 100 was reported at 6,734 at the start of 2019. The index recorded an all-time high of 7,687 in July. The pattern in the consequent months, however, has been slightly downbeat that has brought the index back to around 7,190 where it is currently starting to settle. The FTSE 100 index has noted a gain of slightly under 15% in 2019 so far.
The index printed a 0.4% growth on Friday morning with miners and trade-sensitive stocks cited to have contributed to the most. The FTSE 250 index followed in its steps and recorded the same 0.4% growth as well.
Tensions were seen higher between the two largest economies of the world earlier this week. Following a recent announcement from the White House, however, that the trade talks are headed in the right direction along with China announcing to waive tariffs on a few of the U.S soybean and pork products as an expression of confidence, the overall sentiment was reported to have improved in the global stocks.
Associated British Foods Cited As The Top Gainer On Friday
Analysts have also added that Associated British Foods has topped the list of gainers on Friday. Owing to the British multinational food processing and retailing company maintaining the earnings target, the stock was seen trading 2% higher earlier on Friday. The company recently announced significant growth in the sugar and grocery segment of its business.
President Trump had announced the prospect of waiting for the 2020 presidential elections before a trade deal is finalized with China. As per the experts, if Washington still realizes such a plan, the consequent impact on the global financial markets will be significantly downbeat due to the extension of the trade war.